DMG WORLD MEDIA

KEY DEVELOPMENTS:

1_FOCUS ON B2B AND B2R DIVISIONS

2_INTENTION TO SELL NORTH AMERICAN HOME INTEREST

3_STRONG PERFORMANCE FROM B2B DIVISION

4_OPERATING PROFIT UP BY 12%

5_GROWTH DRIVEN BY SUCCESS OF OIL AND GAS AND TECHNOLOGY SHOWS

dmg world media had a good year with a strong performance by B2B, the largest division, offsetting falls within UK consumer events and its Western US gift shows.

B2B

Revenues and profits* were up 32% and 54% respectively. In the Technology sector, ad:tech expanded rapidly by launching new products in Europe and Asia. Evanta has made excellent progress since being acquired late in 2006 with five new launches of its successful series of executive summits for Chief Information Officers. Overall, revenues from the Technology sector more than doubled and profits* were up by 93%. Profits* from the Oil & Gas portfolio also increased substantially: the Oil Sands Trade Show more than doubled in size and profitability, while profits* from the non-annual Gastech and ADIPEC shows grew by 75% and 14% respectively over the last time they were held. In the Middle East, the Dubai-based shows, which focus on serving the construction, interior design and hospitality sectors, all grew substantially with the business reporting profits* up 27%.

B2R

This division, including the associate George Little Management (GLM) serves a number of retail sectors in North America including gift, home decor and sport & leisure. The division had a mixed year. SurfExpo had two excellent shows with attendance and space sales at record levels and profits* up by 24%. The New York International Gift Fair and the Canadian gift shows continue to perform well. However, trading has been more difficult for a number of the regional gift markets. Overall, profits* from the division were up 3%.

B2C

The North American Home Interest sector had one of its strongest years on record, with profits* up 13%. The Art & Antiques businesses also performed well with profits* up a healthy 11%. The UK consumer business performed poorly with revenues down by 9%. All of this decline fell to the bottom line, leaving profits* from the B2C sector down overall by 26%.

OUTLOOK

dmg world media is to concentrate on its B2B and B2R divisions. We expect the former to show continuing good growth particularly from its technology and oil and gas sectors, assisted by the holding of the biennial Global Petroleum Show in 2008. In the B2R sector, we expect significantly increased profits* from the accelerated acquisition on 1st October, 2007 of the remaining 51% of GLM due to synergies and cost savings. In the B2C sector, whilst the market for UK consumer shows is expected to remain difficult, the business is forecast to pick up.

Overall, dmg world media expects to perform well in 2008.

* Adjusted operating profit (before exceptional items and amortisation and impairment of intangible assets).